Marathon Oil(MRO) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for 2024 was $933 million, a decrease of 19.4% compared to $1,157 million in 2023[9] - Comprehensive income for 2024 was $919 million, down from $1,141 million in 2023, reflecting a decline of 19.4%[9] - For the nine months ended September 30, 2023, Marathon Oil reported a net income of $417 million, compared to $287 million for the same period in 2022, reflecting a 45% increase[17] - Net income for the three months ended September 30, 2024, was $287 million, compared to $453 million for the same period in 2023, representing a decrease of 36.7%[24] - Net income for the nine months ended September 30, 2024, was $193 million, down from $227 million in the same period of 2023, reflecting a decline of approximately 15%[64] Revenue and Sales - Total revenues from contracts with customers for the three months ended September 30, 2024, were $1.615 billion, compared to $1.700 billion for the same period in 2023, a decrease of 5.0%[26] - Revenues from contracts with customers in the US segment decreased by $85 million in Q3 2024 compared to Q3 2023, despite increased crude sales volumes[81] - Total revenues from contracts with customers for the nine months ended September 30, 2024, were $4,945 million, up from $4,822 million in the same period in 2023, reflecting an increase of 3%[103] - International segment revenues increased significantly to $126 million in Q3 2024 from $71 million in Q3 2023, marking an increase of 77%[96] Assets and Liabilities - Total current assets decreased to $1,484 million in 2024 from $1,569 million in 2023, a reduction of 5.4%[12] - Total liabilities decreased to $7,987 million in 2024 from $8,370 million in 2023, a reduction of 4.6%[12] - As of September 30, 2024, total long-term debt outstanding was $4.6 billion, with no outstanding borrowings under the Revolving Credit Facility[44] - The company reported a total of $21 million in derivative instruments, with $10 million classified as commodity derivatives and $11 million as interest rate derivatives[56] Capital Expenditures - Capital expenditures for 2024 were $1,726 million, compared to $1,673 million in 2023, reflecting an increase of 3.2%[15] - Capital expenditures for the three months ended September 30, 2024, were $454 million, compared to $458 million for the same period in 2023, a slight decrease of 0.9%[33] - Capital expenditures for the first nine months of 2024 were $1,726 million, up from $1,673 million in 2023[114] Shareholder Returns - The company repurchased shares under buyback programs totaling $516 million in 2024, compared to $1,121 million in 2023, a decrease of 53.9%[15] - Marathon Oil's shares repurchased under buyback programs totaled $334 million for the nine months ended September 30, 2023[17] - A dividend of $0.11 per share was approved for payment on December 10, 2024, with restrictions preventing an increase beyond this amount[122] Debt Management - Long-term debt increased to $4,573 million in 2024 from $3,378 million in 2023, an increase of 35.3%[12] - The company repaid $300 million of outstanding borrowings from its Term Loan Facility during the fourth quarter of 2023[42] - The company issued $1.2 billion in unsecured senior notes in March 2024, with proceeds used to repay the Term Loan Facility[45] Merger and Acquisition Activities - The proposed merger with ConocoPhillips is expected to close late in the fourth quarter of 2024, pending regulatory approvals[19] - The company has incurred transaction costs of $6 million and $16 million for the three and nine months ended September 30, 2024, respectively, related to the proposed merger with ConocoPhillips[19] - The company plans to convert each outstanding share of its common stock to 0.2550 shares of ConocoPhillips common stock as part of the merger agreement[19] Market and Commodity Risks - The company expects continued volatility in commodity prices due to global supply and demand dynamics, influenced by geopolitical events and economic conditions[90] - The company is exposed to market risks including commodity price risk and interest rate risk, employing financial derivatives as part of its risk management strategy[130] Operational Performance - Segment income for the U.S. operations was $362 million for the three months ended September 30, 2024, down from $453 million in the same period of 2023, a decline of 20.1%[33] - Production expenses increased by $31 million in Q3 2024 compared to Q3 2023, primarily due to higher workover activities and increased costs associated with higher net sales volumes[97] - The company drilled 18 wells to total depth in the Eagle Ford region during Q3 2024, compared to 19 wells in Q3 2023[85]